A Study on “The Impact of Online E-Stores up On Retail Trade Business”.

1. INTRODUCTION E- stores is transforming the offline shopping experience of customers to online by the

help of new technological Devices like 3G, 4G, WIFI is helping to increase the number of online customers. Thus there has been an impact of the growing trend of online E-stores, on retail shops. This is because India slipped from 14th to 20th rank among the top developing Countries in 2016 as per the global retailers of development index [GRDI].

The government’s most prestigious digital India project could take sector to new heights. But it adversely impacting on various shop retailers, malls, supermarkets, departmental stores kirana shops etc.

This study looks into various aspects about how retail trade being affected and also the various recovery mechanism to compete with E-commerce in their race of survival. It also reveals the emerging E-stores impacting on the retailer’s Profitability and it also focuses on strategies need to be adopted by retailers to over the competition in the globalized world.

1.2 OBJECTIVES OF THE STUDY:

The research has been conducted with the fallowing objectives: To study emerging E-stores impacting on profitability of retail shops. To study the changing pricing patterns of retailers to face the

compition from e-stores. To study the changing business patterns of retailers to achieve

customer retention. To study the future scenario of E-stores.

1.4 Research methodology

This research methodology comprises of the source of data, methods adopted to collect such Data sampling techniques, statistical tools for analysis, and data interpretation.

Source of the study Place of the study Sample size and sampling techniquesSampling techniquesData collection techniques

 

   

1.5 Periodicity of the study-

The data for the study has been collected through applying the fallowing techniques:

Direct personal interview and investigation through schedulesData collection tools- data are classified,tabulated,and

represented through chart and Bar diagram.The impact factor has been taken from data based on

examination of retailers over A period of time.The study is conducted in a very short span of time.

List of questions: YES NOHas there been any increase inAverage turnover in the past three years?Is there any decrease in profit margin?Have you made any increase in discountRates offered to customers in recent times?Do customers ask for discount before makingPurchase?Do you keep more variety of stocks at yourStores now-a-days?Do you provide after sales service of personalizedNature of to your customers?Do you advertise about you retail shops?Do you provide any home delivery services to Your customers?Is there is any increase in window shopping in recentTimes?

Presentation of data:The table showing the analysis of various aspects of the impact of online shopping upon retail trade

Turnover: retailers over a period of of time under the study noticed a considerable decline in their Turnover as compared to years back. Some has reported if not decline but stagnancy in their growth which is a warning signal for the enterprise.

profit margin: online shops has brought in a price war in the market and the main suffers of this Price war are the retailers.in order to survive, most of these retailers too has made an attempt to lower their Prices but considering their high cost of operation these retailers has to sacrifice on their margin.

Discount: the retailers are at an alarming rate increasing their discounts in order to stand with the online Stores who offer the customers with unbelievable discounts. But retailers cannot compete with online Stores in terms discounts rate.so it has to lower its prices to an extent to survive in the market.

Variety of stocks: online stores maintain a wide variety of stocks but retailers fail in this context to maintain wide variety of stocks. Retailers cannot maintain a large stock as they may have a negative impact upon Unsold stock at the end of the year which in turn might bring in huge loses to the concern.

Customer service: more and more retailers are now opting for customer services to build up on loyalty And also retailers are now starting up with home delivery services in the same line of the online shops. Also After sale services are provided with a smile

1.6 ANALYSIS AND INTERPRETATION

Window shopping: there has been a trend in recent years for customers to browse the products in a physical Stores and buy it from an online stores at a reduced price. Retailers now have more prospective customers than actual ones.

Advertisement: the retailers now-a-days are more involved in advertisement campaign than even before In order to increase their sales. Retailers leave no occasions to take advantages of the situation to Advertise their firm.

 The table and the diagram highlights the fact about all these aspects and it shows that there is a negative trend on all these aspects with regard to the retailers.

Findings

E-commerce is consistently taking up a larger proportion of consumer time and spendings. There several driving factors for consumers to shop online with price, convenience in shopping and wide range of available products being the primary. The major findings of the study are as follows: 1. Turnover and profit margin of the retailers has considerably decreased in the past few years.

Retail stores are Now-a-days more engaged in services related to customer satisfaction.

2. Although the retailers are not able to keep a wide variety in their stock, they attempt to keep the best of them so as to affect more sales.

3. Customers are seen to make window shopping at an alarming higher rate to have a physical

look at the product and buy that product online at a reduced rate.

4. Retail stores are now starting up with home delivery services of their various products at the door step of their customers.

5. The consumers become more comfortable with the experience of purchasing online with the convenience and product range become relatively more important as a deciding factor for shopping online.

Suggestions and conclusion Suggestions: Retailers have to change their attitude towards the market. Today’s is a consumer market and as a

result the priority is the consumer satisfaction. The firm has to be in the good books of the consumer. Better quality products, fair price and friendly

after-sale services are the basic areas in which the business has to concentrate to a remarkable extent. Additional services should be provided to the consumers to woe them and build upon a loyalty which in

turn would ensure a stable sales in the years to come.

Conclusion: Today retailing means going into shopping centers, going online and going mobile. In all these, small

retailers miss out somewhere. But the nearby store is always the most important concern for all reason and seasons. It needs to revive not just survive.

The retail stores needs to simply uplift its pattern of business and face the competitive world with a more positive outlook. E-stores and retail stores both have to survive, none at the cost of the other. It’s not just about the livelihood it gives to the thousands of people but also the convenience and the steadfastness of a fixed retail store.